Every year, the Big Red Car makes predictions for the coming year.
On 2 January 2017, the Big Red Car made some predictions about the ECONOMY.
Let’s grade the old boy, shall we?
You can see all of them here:
US GDP growth Q3-2017 is 5% on an annualized basis and Trump says, “What did I tell you?” Economists begin to complain, “President Trump has no restraint. If this keeps up we are looking at growth rates approaching ten percent.”
Partly true. GDP growth was recently 3.3% which is a move in the right direction.
US jobs flood back from overseas and the desire to buy American goods and employ Americans becomes a bedrock value of the economy.
Partly true. Job growth has been good, but there is scant evidence it is because jobs are flooding back from overseas. Stay tuned.
President Trump uses access to the American market like a bludgeon and makes the world pay an entrance fee to get into the US. He Tweets: “You can’t get into Disneyland for free, right?”
Work in progress. Trump dumped a few trade agreements and has Canada and Mexico at the bargaining table on NAFTA.
The NYSE index tops 24,000 by 31 December 2017, creating a sound base for more growth in 2018. Trump says, “Huh? What did you expect?”
HOME RUN. GRAND SLAM HOME RUN. When Paul Krugman said the stock market would dump because of Trump, the Big Red Car said, “Not so fast, y’all.”
Huge prediction given the stock market was in the high 19,000 range at the time. big win.
Median family income makes solid upward movements as the combination of controlled immigration, less regulation, lower taxes dramatically increases employment. Employers begin to complain of a shortage of labor. Poets are still in over suppply.
Work in progress. Poets remain in oversupply.
Unemployment — faux BLS U-3 — is at a low, but there is still not a shortage of labor and median family income is still stagnant.
I continue to be hopeful on this subject.
The Labor Force Participation Rate reverses course and begins to increase. Trump says, “Anybody in America who wants a job can get one. If you’re having a problem, call me personally.”
True. The Labor Force Participation Rate did reverse course. It has begun to increase.
So, there you have it, dear readers. The report card on predictions relating to the ECONOMY. If you do not agree with the scoring, score it yourself and explain why.
We will cover the others in subsequent posts. Now, let’s focus on y’all. Get ready to have a great holiday season. Merry Christmas!